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HomeNews With no licenses, Telenor, Videocon, Tata Teleservices to lose 10 mn users on January 18

With no licenses, Telenor, Videocon, Tata Teleservices to lose 10 mn users on January 18

Friday, 07 December 2012

Millions of mobile phone users in India may have to look for new service providers with three telecom operators likely to switch off their networks from January 18. However, the imminent network shutdown offers a window of opportunity for other operators to pick up these subscribers.

Telecom operators Telenor, Videocon and Tata Teleservices, which collectively have about 10 million subscribers in the circles where their licences expire next month, are among the nine telcos whose mobile permits were cancelled by the Supreme Court in February this year in the 2G-spectrum allocation case. The affected operators have permission to use their allocated spectrum till January 18.

In a recent re-run of the auction, Norway's Telenor was able to secure airwaves in only six circles, excluding Mumbai, Kolkata and West Bengal where it has nearly 7.5 million customers.

Similarly Videocon, which managed to retain permits in six regions, will have to shut down GSM operations in 11 circles including the key markets of Mumbai, Maharashtra, Tamil Nadu, Kolkata, Kerala, Karnataka, Andhra Pradesh and Rajasthan, which together account for its nearly 1.7 million users.

The count of affected subscribers is based on end-October data provided by the Cellular Operators Association of India (COAI).
Tata Teleservices, which chose not to bid again for the CDMA airwaves it held in the loss-making zones of Assam, the northeast and J&K, will disconnect services to nearly 300,000 subscribers in these areas.

The government has said it will hold another round of spectrum auctions before March 2013. An inter-ministerial panel is set to meet on Friday to decide on the reserve price for this auction.

A spokesman for the Telenor Group said, "We have been able to ensure business continuity in six circles. In the remaining regionsâMumbai, Kolkata and West Bengal-our services will remain operational at least till January 18." He declined comment on the fate of its nearly 1,200-strong workforce in these regions.

The operator's Indian unit, Uninor, has lost revenue market share in the three months ended September, which analysts at Goldman Sachs attributed to "its reduced footprint going into the 2G auctions".

Videcocon group chairman Venugopal Dhoot did not respond to an emailed query sent by ET seeking information on its plan and potential job losses.
Tata Teleservices, however, said it is taking necessary steps with respect to employees, customers and business partners in the circles where it will stop operations. "TTSL will close down operations in these circles from January 18 and announcements regarding steps being taken will be made in due course," a company spokeswoman said. She did not give more details on the affected workforce. â Economic Times